11:24 AM EST, 11/26/2024 (MT Newswires) -- Exxon Mobil's ( XOM ) 2018 strategic pivot that included increased capital expenditures has started to pay off despite initial skepticism and significant challenges, RBC Capital Markets said in a note Tuesday.

"Fast forward to now, and the rise in commodity prices has not only let Exxon Mobil ( XOM ) pay down substantial amounts of debt, but underlying growth has also started to materialize," the firm said.

RBC expects Exxon Mobil's ( XOM ) capital expenditure guidance, currently between $22 billion to 27 billion per year, to likely increase due to the Pioneer Natural Resources acquisition and new final investment decisions.

The company also plans to shift to cash capital expenditure guidance, with projections reaching $26.5 billion in 2025 and $29 billion in 2026, which are above consensus expectations, the firm added.

RBC reduced its price target for Exxon Mobil ( XOM ) to $115 from $120 and kept the sector perform rating.

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